Mynaric AG IPO: Is laser comms firm’s MYNA stock worth considering?

Highlights

• Mynaric AG plans to sell one million new ordinary shares in the form of four million ADSs in the offering
• It is expected that the firm would start trading on Nasdaq on or around November 12
• For the first six months of 2021, the company's group revenue was €1.34 million (US$1.53 million)

Mynaric AG said that its management board has resolved with the regulatory board regarding the approval on its volume and issue price of the initial public offering of American Depositary Shares (ADSs) on Friday, November 12.

Mynaric AG is a communications equipment firm based in Gilching, Germany. It engages in manufacturing laser communication instruments for airborne and spaceborne communication networks. Wall Street investors are presumably waiting for the company's debut on the US market, as it is expected that the firm would catch eyeballs due to its innovative operations.

Mynaric AG IPO: Is laser comms firm’s MYNA stock worth considering?

The pioneer of laser communication primarily produces optical fiber for skies that facilitate secure and fast wireless data transmission between aircraft, drones, and satellites. Meanwhile, with the advancement of global digitalization, the need for secure and fast network connectivity is also increasing, considering which, experts expect growth in the firm.

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Mynaric AG is one of the most discussed technology and communication IPOs this year. The series of IPOs in the US market this year have suggested that companies have regained confidence and businesses are expected to grow in the coming quarters.

The developer and manufacturer of laser equipment for wireless data transmission was founded in 2009. It aims to commercialize wireless laser communication for the aerospace industry. Meanwhile, by 2012, the firm began to work on demonstrating air-to-ground and air-to-air features to customers, for advancing the technology and acquiring product-level maturity.

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The firm's market success is indicated by the increase of its employee count by around three times since 2014. In addition, the firm also expanded its operations and established an office in North America to serve clients in the US and Canada.

In 2017, the firm went public on the German market through its listing on the Frankfurt Stock Exchange to raise its growth capital to enter serial production. Mynaric's CEO, Bulent Altan, leads the firm's management and has served the company since March 2019. Previously, Mr. Altan held the role of vice president and was in charge of avionics at Space Exploration Technologies.

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Details of IPO: Number of shares offered and offering price

The company plans to sell one million new ordinary shares of Mynaric through 4 million ADSs in the offering, i.e. every ordinary share would be represented by four ADSs. In addition, it would provide a 30-day option for the syndicate banks to purchase an additional 600,000 ADSs of the company.

The gross proceeds of the offering is expected to be US$66,000,000 by selling four million ADSs at a price of US$16.50 per ADS. Mynaric is expected to go public through its listing on Nasdaq on or around November 12, under the ticker symbol "MYNA", while the expected closing of the offering would be on or around November 16, considering the satisfactory closing conditions for the customers.

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Company financials:

For the six months ended June 30, the company's revenue was €1.34 million (US$1.53 million), as compared to €90,000 (US$103,020) in the same period of the previous year. For the period, it reported a consolidated net loss of €16.07 million (around US$18.39 million), against a loss of €7.29 million (around US$8.34 million) for the six months ended June 30, 2020.

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Bottom line:

The registration statement for the offering of the ADSs has been filed with the US Securities and Exchange Commission (SEC) and has been declared "effective" on Wednesday, November 10. Meanwhile, the lead book-running managers for the offering are Jefferies and Credit Suisse, while Canaccord Genuity would act as the book-runner.